Yahoo Finance Shareholders May Not Be So Generous With United States Lime & Minerals, Inc.'s (NASDAQ:USLM) CEO Compensation And Here's Why
Key Insights
United States Lime & Minerals' Annual General Meeting to take place on 2nd of May
Salary of US$530.0k is part of CEO Timothy Byrne's total remuneration
Total compensation is 283% above industry average
Over the past three years, United States Lime & Minerals' EPS grew by 38% and over the past three years, the total shareholder return was 119%
Under the guidance of CEO Timothy Byrne, United States Lime & Minerals, Inc. (NASDAQ:USLM) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 2nd of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for United States Lime & Minerals
Comparing United States Lime & Minerals, Inc.'s CEO Compensation With The Industry
According to our data, United States Lime & Minerals, Inc. has a market capitalization of US$1.7b, and paid its CEO total annual compensation worth US$5.8m over the year to December 2023. We note that's an increase of 40% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$530k.
For comparison, other companies in the American Basic Materials industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$1.5m. Hence, we can conclude that Timothy Byrne is remunerated higher than the industry median. Moreover, Timothy Byrne also holds US$9.0m worth of United States Lime & Minerals stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$530k | US$505k | 9% |
Other | US$5.3m | US$3.6m | 91% |
Total Compensation | US$5.8m | US$4.1m | 100% |
Talking in terms of the industry, salary represented approximately 13% of total compensation out of all the companies we analyzed, while other remuneration made up 87% of the pie. It's interesting to note that United States Lime & Minerals allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at United States Lime & Minerals, Inc.'s Growth Numbers
United States Lime & Minerals, Inc.'s earnings per share (EPS) grew 38% per year over the last three years. In the last year, its revenue is up 19%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has United States Lime & Minerals, Inc. Been A Good Investment?
We think that the total shareholder return of 119%, over three years, would leave most United States Lime & Minerals, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for United States Lime & Minerals that investors should think about before committing capital to this stock.
Important note: United States Lime & Minerals is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
